Woodside’s shares were $1.05, or 2.8 per cent, higher at $38.96 in afternoon trade.

Woodside also lifted its fully-franked final dividend by 10 US cents, to 65 US cents.

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"Woodside's production target for 2013 remains unchanged at a range of 88 to 94 MMboe (million barrels of oil equivalent), comprising 47 per cent from NWS Gas facilities, 41 per cent from Pluto LNG and 12 per cent from other assets," Woodside said in a statement on Wednesday.

Production in 2012 was 84.9 mmboe, up 31 per cent from 64.6 mmboe in 2011.

Woodside’s chief executive Peter Coleman said the 2012 result was underpinned by a 31 per cent increase in production and 30 per cent lift in sales revenue.

The start-up of the Pluto liquefied natural gas (LNG) project last April and higher contributions from the Vincent and North West Shelf oil facilities also helped improve earnings.

‘‘The safe start-up of Pluto marks 2012 as a milestone year for Woodside and cements our position as Australia’s leading LNG operator,’’ Mr Coleman said.

Mr Coleman said Pluto LNG performed at better-than-expected rates due to high reliability in the production ramp-up phase.

Between its start-up last April and the end of calendar 2012, Pluto LNG produced 2.7 million tonnes of LNG and 2.1 million barrels of condensate.